Reinvestment Rate

What Does It Mean?
What Does Reinvestment Rate Mean?
The rate at which cash flows from fixed-income securities may be reinvested.
Investopedia Says
Investopedia explains Reinvestment Rate
Because of the additional interest income, bondholders can make larger investment returns if they reinvest received coupon payments.
Related Links
  • Bond Basics Tutorial - Investing in bonds - What are they, and do they belong in your portfolio?
  • The Money Market - If your investments in the stock market are keeping you from sleeping at night, it's time to learn about the safer alternatives in the money market.
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